Section 44M in The Bihar Co-operative Societies Act, 1935
44M. Power of Land Development Bank to pay prior debts of mortgagors and secure consequential reliefs.
(1)Where a mortgage is executed in favour of a Land Development Bank for payment of prior debts of the mortgagor, such Bank may, notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882) by such notice in writing may be prescribed, require any person to whom any such debts is due to receive payment of such debt or part thereof from the Bank at its registered office or any of its branch offices within such period as may be specified in the notice.(2)Where any such person fails to receive such notice or such payment, such debt or part there of, as the case may be, shall cease to carry interest from the expiration of the period specified in the notice:Provided that where there is a dispute as regards the amount of any such debt, the person to whom such debt is due may refer the dispute to Registrar for decision in accordance with provisions of section 48:Provided further that the person to whom such debt is due shall, pending the decision in the dispute, be bound to receive payment, of the amount offered by the Land Development Bank towards the debt but such receipts shall not prejudice the right, if any, of person to recover the balance claimed by him.(3)Where a notice has been served under sub-section (1) on any person for receiving payment of his dues, such person shall be bound to deliver possession, to the mortgagor, or any property held in usufructuary mortgage for the debts due on or before the date specified in the aforesaid notice:Provided that he may deliver possession of any agricultural land after harvesting of the standing crop, if any, and in such an event he shall be entitled to receive the amount due to him from the Land Development Bank on the date of delivery of possession given to the mortgagor.(4)Where a person holding any property in usufructuary mortgage refuses delivery of possession in the manner indicated in sub-section (3), the Collector shall, on an application of the Land Development Bank made in this behalf, after making a summary enquiry reject the mortgagee and restore the mortgaged land to the mortgagor and the mortgage shall thereupon be deemed to have terminated.(5)The provisions of this section shall be subject to any tenancy laws for the time being in force.
